XOMA Royalty and Takeda Execute Strategic Royalty Sharing Transaction and Amend Existing Agreement for Mezagitamab
Rhea-AI Summary
XOMA Royalty (NASDAQ: XOMA) and Takeda amended their 2006 collaboration via a strategic royalty share transaction announced Dec 30, 2025. Takeda regains a majority of XOMA Royalty’s mezagitamab economics while XOMA Royalty will retain a low single-digit royalty on mezagitamab and up to $13.0 million in milestones (previously mid-single-digit royalty and $16.25 million in potential milestones).
In exchange, XOMA Royalty will receive payments (low to mid-single-digit royalties and milestones) tied to a basket of nine development-stage assets from Takeda’s externalized portfolio, including programs from Neurocrine, Mirum, Oak Hill Bio, Recursion, and others.
Positive
- Portfolio expanded to royalties on 9 development-stage assets
- Retains a low single-digit royalty on mezagitamab
- Keeps up to $13.0 million in mezagitamab milestones
Negative
- Mezagitamab milestones reduced from $16.25M to $13.0M
- Mezagitamab royalty cut from mid- to low single-digit
News Market Reaction – XOMAO
On the day this news was published, XOMAO gained 0.08%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
– Takeda regains a majority of XOMA Royalty’s royalty interest in mezagitamab (TAK-079) –
– XOMA Royalty will be entitled to payments based on a share of milestones and royalties associated with nine development-stage assets held within Takeda’s externalized assets portfolio –
EMERYVILLE, Calif., Dec. 30, 2025 (GLOBE NEWSWIRE) -- XOMA Royalty Corporation (NASDAQ: XOMA), the biotech royalty aggregator, announced today it has amended its collaboration, originally established in 2006, with Takeda through a strategic royalty share transaction. Takeda’s royalty and milestone payment obligations to XOMA Royalty related to mezagitamab will be reduced, and XOMA Royalty will receive payments based on low to mid-single-digit royalties and milestones across a basket of nine development-stage assets that are held within Takeda’s externalized assets portfolio.
“We continue to find ways to expand and diversify our royalty and milestone portfolio through creative transactions that are beneficial to both parties,” stated Brad Sitko, Chief Investment Officer of XOMA Royalty. “Takeda and XOMA Royalty have a long history of collaboration. By amending our collaboration, we are able to return a portion of our mezagitamab economics to Takeda, while also expanding and diversifying XOMA Royalty’s portfolio across several interesting early- and late-stage programs.”
Mezagitamab
Prior to amending the collaboration, XOMA Royalty held a mid-single digit royalty and
Development-Stage Assets from Takeda’s Externalized Assets Portfolio
Osavampator
- Neurocrine Biosciences is developing osavampator, a potential first-in-class, investigational alpha-amino-3-hydroxy-5-methyl-4-isoxazole propionic acid (AMPA) positive allosteric modulator (PAM) for patients who have inadequate response to treatment for major depressive disorder (MDD).
Volixibat
- Mirum Pharmaceuticals is developing volixibat, a minimally absorbed, orally administered investigational therapy designed to selectively inhibit ileal bile acid transporter (IBAT), for primary sclerosing cholangitis (PSC) and primary biliary cholangitis (PBC).
OHB-607 and five early-stage Oak Hill Bio assets
- Oak Hill Bio and their partner are developing OHB-607, a recombinant human IGF-1/IGFBP-3 for the prevention of bronchopulmonary dysplasia in premature infants. Additional Oak Hill Bio assets that have the potential to generate royalties address other high unmet need or rare disease areas.
REC-4881
- Recursion Pharmaceuticals is developing REC-4881, an investigational MEK1/2 inhibitor for familial adenomatous polyposis, a rare tumor predisposition syndrome affecting approximately 50,000 people in the U.S., France, Germany, Italy, Spain, and the UK1.
About XOMA Royalty Corporation
XOMA Royalty is a biotechnology royalty aggregator playing a distinctive role in helping biotech companies achieve their goal of improving human health. XOMA Royalty acquires the potential future economics associated with pre-commercial and commercial therapeutic candidates that have been licensed to pharmaceutical or biotechnology companies. When XOMA Royalty acquires the future economics, the sellers receive non-dilutive, non-recourse funding they can use to advance their internal drug candidate(s) or for general corporate purposes. XOMA Royalty has an extensive and growing portfolio of assets (asset defined as the right to receive potential future economics associated with the advancement of an underlying therapeutic candidate). For more information about XOMA Royalty and its portfolio, please visit www.xoma.com or follow XOMA Royalty Corporation on LinkedIn.
XOMA Royalty Forward-Looking Statements/Explanatory Notes
Certain statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding the timing and amount of potential commercial and milestone payments to XOMA Royalty and other developments related to mezagitamab, osavampator, volixibat, OHB-607 and the Oak Hill Bio assets, and REC-4881. In some cases, you can identify such forward-looking statements by terminology such as “anticipate,” “intend,” “believe,” “estimate,” “plan,” “seek,” “project,” “expect,” “may,” “will”, “would,” “could” or “should,” the negative of these terms or similar expressions. These forward-looking statements are not a guarantee of XOMA Royalty’s performance, and you should not place undue reliance on such statements. These statements are based on assumptions that may not prove accurate, and actual results could differ materially from those anticipated due to certain risks inherent in the biotechnology industry, including those related to the fact that our product candidates subject to out-license agreements are still being developed, and our licensees may require substantial funds to continue development which may not be available; we do not know whether there will be, or will continue to be, a viable market for the products in which we have an ownership or royalty interest; and if the therapeutic product candidates to which we have a royalty interest do not receive regulatory approval, our third-party licensees will not be able to market them. Other potential risks to XOMA Royalty meeting these expectations are described in more detail in XOMA Royalty's most recent filing on Form 10-Q and in other filings with the Securities and Exchange Commission. Consider such risks carefully when considering XOMA Royalty's prospects. Any forward-looking statement in this press release represents XOMA Royalty's beliefs and assumptions only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. XOMA Royalty disclaims any obligation to update any forward-looking statement, except as required by applicable law.
EXPLANATORY NOTE: Any references to “portfolio” in this press release refer strictly to milestone and/or royalty rights associated with a basket of drug products in development. Any references to “assets” in this press release refer strictly to milestone and/or royalty rights associated with individual drug products in development.
As of the date of this press release, the commercial assets in XOMA Royalty’s milestone and royalty portfolio are VABYSMO® (faricimab-svoa), OJEMDA™ (tovorafenib), MIPLYFFA™ (arimoclomol), XACIATO™ (clindamycin phosphate) vaginal gel
| XOMA Royalty Investor Contact: | XOMA Royalty Media Contact: |
| Juliane Snowden | Kathy Vincent |
| XOMA Royalty Corporation | KV Consulting & Management |
| +1-646-438-9754 | kathy@kathyvincent.com |
| juliane.snowden@xoma.com |
FAQ
What did XOMA Royalty and Takeda change about mezagitamab on Dec 30, 2025?
How does the transaction affect XOMA Royalty’s portfolio (NASDAQ: XOMA)?
How did mezagitamab economics change for XOMA Royalty numbers-wise?
Which third-party programs are included in XOMA Royalty’s new basket from Takeda?
Will XOMA Royalty still receive payments if mezagitamab succeeds commercially?
